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Trump meeting with oil and gas executives in effort to lower prices
President Donald Trump on Tuesday will meet with oil and gas executives in an effort to lower prices at the pump and the war with Iran and the power struggle over the Strait of Hormuz continues.
Eager to close out the summer with a final Labor Day getaway? You may need to pack a little extra patience and a bigger budget this year.
Strong travel demand is colliding with surging fuel costs, making this holiday weekend one of the most expensive on record for road trippers and flyers alike.
Pain at the pump
By the numbers:
If you're hitting the road, prepare for sticker shock. For the first time in history, Americans could see the national average sit above $4 on Labor Day, eclipsing the previous holiday record of $3.83 per gallon set back in 2012. Last year, the national average on Labor Day was just $3.19.
Experts say the surge is a result of global supply constraints. Ukrainian drone attacks have knocked several Russian refineries offline, severely reducing the global supply of refined fuels. Combined with restricted shipping traffic through the Strait of Hormuz, these international pressures are driving up the cost of crude oil and trickling down to local gas stations.
Worst times to travel
Timeline:
Holiday road trippers will be mixing with regular weekday commuters, creating massive bottlenecks. Experts expect the absolute worst congestion to hit on Thursday, Sept. 3, and Friday, Sept. 4.
Worst times to be on the road:
- Thursday: 2 p.m. to 7 p.m.
- Friday: Noon to 8 p.m.
- Saturday: 1 p.m. to 5 p.m.
- Monday (Return Trip): 2 p.m. to 5 p.m.
AAA strongly encourages motorists to leave early in the morning, map out alternative routes, and avoid afternoon departures whenever possible.
More price hikes
Dig deeper:
Road trippers aren't the only ones paying more. AAA booking data reveals significant price hikes across major vacation categories:
- Domestic airfare: Flights to the most popular domestic destinations are up nearly 20% from last year, averaging $790 for a roundtrip ticket.
- Hotels: Domestic hotel bookings are up 9%, while international accommodations are 12% more expensive.
However, international airfare is actually down 4% year-over-year, and cruises departing from U.S. ports are 4% cheaper than last year, making bundled travel an attractive option for budget-conscious vacationers.
The Source: Information from this article was sourced from AAA and GasBuddy.